Karl's record with the Nuggets is 260-161, and the team, at 35-18, leads the West's Northwest Division by two games over the Utah Jazz.

"I think it's important to the team," Karl said Friday during a news conference for Sunday's All-Star Game, where he will coach the Western Conference. "I don't want to be a distraction.

"[Owner] Stan [Kroenke] and I got together. With the situation with the world of basketball right now, I think it's a good thing for me and a good thing for the Nuggets to do just one year and figure it out later, rather than getting into an argument and anger and frustration and pointing fingers and the things that could happen. It's a good solution."